Where do dividends come from?
When companies generate revenue, all the money that’s left after accounting for the cost of business is the net profit, or net income. Shareholders (who are usually represented by a board of directors) choose what to do with that money. Usually, that means either investing it back into the business or distributing a portion of it to shareholders. A dividend is your personal share of the company’s net profit as determined by the shareholders.
Companies that are currently seeking growth often choose to reinvest this net profit into the business. More established companies, or those who aren’t seeking rapid expansion, often choose to redistribute a portion of their net profits to the shareholders.
Related questions View all Tips & Guidance
Q. Why Am I Still Receiving Statements?
We at Stash are legally required to send our clients statements for their account(s) in any month in which there was any activity or funds in the account. If you believe you should not have received a statement, log back into your account to see if your accounts are fully closed and… If you are fully closed with no funds in any of your account(s): Since your account is now fully closed and unfunded this would be your final statement.…
Q. Trying to Link your Stash with TD Bank?
As of April 25th, 2022, at 12:01a.m. ET, TD Bank implemented a change that requires all institutions, including Stash, to re-link once every 90 days if you linked your account via the Instant Link option using Plaid. What this means for Stash customers who are linked to a TD Bank account: This will not impact any deposits you make from your account,…
Q. Why did you sell part of my investments to cover my monthly subscription fee?
The way we initially attempt to charge the fee differs. We’ll try to pull from your Portfolio cash, linked debit/credit card, or Stash Banking1 balance first. If that doesn’t work, then we’ll sell a portion of your holdings in your Personal Invest Portfolio to cover the fee.…
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